Question : The selling and the cost price of an article are Rs. 3960 and Rs. 3600, respectively. If a 12% discount was given, what is the percentage mark-up?
Option 1: 25%
Option 2: 30%
Option 3: 35%
Option 4: 20%
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Correct Answer: 25%
Solution :
Given: The cost price is Rs. 3600 and the selling price is Rs. 3960.
Let the marked price be Rs. $x$.
$\text{SP}=\text{MP}-\frac{\text{Discount%}}{100}×\text{MP}$, where MP = marked price, CP = cost price
$⇒ 3960=x-\frac{12}{100}×x$
$⇒ 3960=\frac{88x}{100}$
$⇒ x = 4500$
So, the article's cost is Rs. 3600.
Now, percentage mark-up = $\frac{\text{MP-CP}}{\text{CP}}\times100$
So, the percentage mark-up $=\frac{4500–3600}{3600}\times100=25$%
Hence, the correct answer is 25%.
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